Interim Quality Performance Report Davis, Inc., had the following quality costs for the years ended December 31, 20x4 and 20x5: 20x4 20x5 Prevention costs: Quality audits $69,000 $103,500 Vendor certification 112,500 168,750 Appraisal costs: Product acceptance $85,000 $127,500 Process acceptance. 109,000 105,000 Internal failure costs: Retesting $100,000 $82,000 Rework 204,000 188,000 External failure costs: Recalls $132,500 320,000 $106,000 298,000 Warranty At the end of 20x4, management decided to increase its investment in control costs by 50 percent for each category's items with the expectation that failure costs would decrease by 20 percent for each item of the failure categories. Sales were $12,000,000 for both 20x4 and 20x5. Required: 1. Calculate the budgeted costs for 20x5. 1,168,450 X